Department of Transportation

Economic Malpractice

by Bill O'Connell on December 5, 2009

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Let’s say you were having a problem with your knee.  So you go to the doctor and tell him your problem. The doctor examines you and says he has to act quickly.  He says you need an operation and if you have it, you will experience some mild pain for a brief time, but if you don’t  the pain will get worse.  How bad you ask?  On the pain scale, designed by Andrea Mankoski, you are currently at a 6, described as, “Can’t be ignored for any length of time, but you can still go to work and participate in social activities.”  He says without the operation you will probably reach a 9, “Unable to speak.  Crying out or moaning uncontrollably — near delirium.”  With the operation you will probably peak at 8, “Physical activity severely limited; you can read and converse with effort; nausea and dizziness set in as factors of pain,” but then things will progressively improve.  The pressure he is putting on you to decide is intense, so you give him the go ahead.

The good doctor performs the operation and as he predicted the pain does get worse, but it doesn’t stop.  You are beyond delirium, you are reaching level 10, “Unconscious.  Pain makes you pass out.”  Your medical proxy, demands the doctor tell her what went wrong.  The doctor shrugs and says it was worse than anybody thought, but then says the surgery is working better than expected. ”What the hell did you do in that surgery, you screw-up?” your proxy demands.   The doctor, just smiles, and turns on his heel ands walks away, leaving your proxy standing there sputtering, desperately trying to find the words to express her disbelief and outrage.  When she finally regains her composure, standing there all alone, she reaches for her cell phone to call a malpractice attorney.

Economic Stimulus Surgery

Dr. Obama told us, upon taking office, that we desperately needed a stimulus package or the unemployment rate would continue to rise.  He said without a stimulus package, the unemployment rate would rise to 9%, if we did NOTHING!  His able assistants, Harry “the Healer” Reid, and “Nurse” Nancy Pelosi, slammed through the $787 billion package.  We were saved!  Unemployment would not rise above 8% before starting to fall.  But there isn’t a happy ending to this fairy tale.  The unemployment rate rose past 8%; it rose past 9%; it rose past 10%.  So when Dr. Biden steps to the microphone and says the stimulus is working better than expected, why isn’t someone putting a straight-jacket on him and carting him off?  Why isn’t someone pointing out that the stimulus may have actually made the problem worse?  Team Obama said themselves that it would have been better to do nothing. The unemployment rate would have peaked at 9%.  Why are they getting  pass?

Non-stimulating Stimulus

Look more closely at the stimulus, which we now have had time to do.  Extending unemployment benefits does not create jobs.  Giving teachers a raise, does not create jobs.  Spending 80% of the stimulus funds so far in the Department of Labor, the Department of Health and Human Services, and the Department of Education doesn’t speak to job creation.  It speaks to a sop to their union backers and the creation of their impossible to measure metric “jobs saved.”  Only $4 billion so far has gone to the Department of Transportation and their “shovel ready” projects.  Even these, while a help to construction workers, doesn’t do a thing for laid off bank tellers, software engineers, or FedEx employees.

The Obama administration is spending us into oblivion,  while pouring gasoline on to the unemployment fire with their ill conceived and basically botched stimulus plans.  What is needed are tax cuts that will allow the market to direct the resources where they will do the most good and get the economy moving again.  Instead Obama is taxing and spending our way to economic disaster. What we need is a sharp curtailment in government spending and to shrink the size of the federal beast. Is there a good economic malpractice trial lawyer out there?

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Jobs Jive

by Bill O'Connell on December 4, 2009

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There was a commercial not too long ago where a young man looked out his window to the village green where a bundle of money had just fallen.  He calls his wife/girlfriend over to show her.  She suggests running down and getting it, but he says, no, let’s wait.  Next you see a frizzy headed guy down on the green who screams, “MONEY!!!!”  In seconds, people came out of the woodwork and scoffed up all the money while the young couple looked on.

The image of that commercial popped into my head as I considered the job summit being led by President Obama.  To me, the young couple represented the government pondering how to direct the economy to achieve this specific goal or that.  The mob on the green was the free market.  While the government dithers over what kind of legislation to write, which special interest groups to pay off to pass it, how to develop incentives to get private industry to do this or that, if they would just cut taxes and get out of the way, the free market would get to work creating jobs where they are needed, not where some bureaucrat thinks they should go.

Uncertainty

The biggest cloud overhanging this economy is uncertainty.  The Obama administration is slamming through enormous changes: a $787 billion Porkulus package, cap and trade, health care.  Businesses look at this combined with the accumulation of massive government debt, tax increases rather than cuts (yes letting the Bush tax cuts expire is a tax increase, not just the expiration of tax cuts as Speaker Pelosi tries to spin it) and they don’t know what hiring that extra employee is going to cost, let alone what it will cost to keep the employees they already have.  So they don’t hire until the dust  settles and they can calculate the impact.

“Tax incentives for job creation are “worthy of further consideration,” he said, while adding that the administration is also set on making a big push in the area of green jobs.” – President Obama at Jobs Summit

“Worthy of further consideration”?  Since conservatives have been calling for tax cuts for a year now, this kind of statement in Obama-ese translates thusly, “I have to make a nod to the right, to acknowledge that I heard them, but it ain’t happening.”  Couple that with the “big push in the area of green jobs.”  We are in the midst of the scientific scandal that the “settled science” of man-made global warming could be the greatest hoax since Bernie Madoff, and Obama wants a big push in the area of green jobs.  What if that area collapses because the urgency that Al Gore has been screaming about is no longer urgent?  It’s government planning on the order of Soviet five-year plans or Mao’s Great Leap Forward programs.  It harkens back to Jimmy Carter’s giant Synfuels project that was going to convert coal into oil, until oil prices fell and the project imploded, but not before billions of tax dollars were poured into that rat hole.

How Simulating!

If you listen to Joe Biden, the stimulus plan is working better than expected.  But let’s take a closer look.  As of about three weeks ago only $120 billion of the stimulus money had been spent. (So why is Congress looking at another stimulus with over $600 billion left to spend in the first one?)  Of that money, 80% went to the Department of Education, Health and Human Services, and the Department of Labor.  What about all the “shovel ready” projects?  Only about $4 billion has gone to the Department of Transportation.  Feel better?

Jobs Summit Attendees

So who is meeting with President Obama at the jobs summit?  Well first let’s look at who was not invited:

  • U.S. Chamber of Commerce — they have butted heads with Obama over health care and climate change policies
  • National Federation of Independent Businesses

I don’t know about you, but I think they might have an idea or two about how to create conditions that let the free market create jobs.  As for the attendees:

  • Service Employees International Union (SEIU) officer
  • President of the American Federation of Teachers — a union of workers in a government run monopoly
  • United Food & Commercial Workers International Union
  • CEOs of some Fortune 500 companies

How many jobs do unions create, not occupy, create?  Think of the auto industry, steel industry, public K-12 education, the Postal Service, and government in general.  Do they bring images of thriving, vibrant, engines of job creation?  Or is the image more of the basket cases of the U.S. economy?  This is not a slight against the union workers themselves, but rather of their leadership who create so many restrictions on job rules to artificially create the need for more jobs.  There motto is: why have three people do the work, when you have five do it?

As far as big business is concerned, let me dispel the thought that conservatives and big business go hand in hand.  In many cases big business looks to cut deals with the government to protect their industries and markets from upstart companies.  They have gotten big and lethargic, rather than nimble and vibrant.  Small businesses create about 80% of the jobs in the U.S. and they didn’t have a seat at the table.

So was the jobs summit about creating jobs or just jive talk?  If you want a real jobs summit see what American Solutions was hosting in Cincinnati, Ohio and Jackson, Mississippi.  They actually discussed ideas that would work.

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Good Government, Bad Government

by Bill O'Connell on November 18, 2009

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If I asked you a simple question, what government organization works well, what would you say?  Let’s take a look at two government organizations and compare their effectiveness and motivation.

The Military

Whether you support our troops on the battlefield or want them to always stay home in their barracks, most Americans will say the military does a pretty good job.  Why? That is, why are they effective, not just why do people think so?  Well, they put a lot of investment in training and technology.  They seem to have solved the problem of integration, being based on merit rather than racial prejudice.  These are all important things, but I don’ t they get to the core of the issue.  The key question is, what happens if they don’t do their job?  They die…they die, the guy beside them dies, their buddies die, and depending on the size of the conflict, their families and country may eventually die.  With that kind of motivation, race is not even secondary.  If the guy next to me has got my back and I have his, I don’t care what color he or she is.  We do it right, we live;  we don’t, we die.

The K-12 Teacher

K-12 education comes under fire in this country, and rightly so, for failing to produce an educated workforce.  In New York, for example we spend over $14,000 per student, per year on education, far above the national average of around $9,000.  Are students in New York 50% smarter than the country in general?  Hardly.  Is the nation as a whole turning out well educated students?  Sadly, no.

Our K-12 public schools are a government run monopoly.  So what happens to a K-12 teacher if they fail to do their job?  If they have been in the job long enough to get tenure, nothing.  They will get a raise like everyone else.  So what motivates them to turn out outstanding students?  I’ll wait.

Let me be clear that I don’t want to lump all teachers together.  They are many teachers who, by having what  I suppose is a strong moral streak,  do a great job because they want to teach.  Okay, so let’s look at the teaching profession where there is a group that does their best because they get satisfaction from doing a good job.  Now, some studies come out that say the way to improve results is smaller classroom size.  The teachers’ unions get behind it and eventually push it through.  So what does that mean?  If you cut the size of the class in half, you double the number of classes.  If you double the number of classes, you have to double the number of teachers and thus have to go deeper into the labor pool to find them.  Before you took this step, we can probably assume that all the self-motivated teachers were already on the job.  So the additional teachers are motivated by what?

Co -conspirators

That brings us back to the teachers’ unions.  When government’s come under pressure to cut educational expenses, the airwaves are soon flooded with the heart wrenching commercials pleading to restore the funding “for the children’s sake.”  What you don’t hear is the trailer that says, “This commercial paid for by the PTA,” or “This commercial paid for by the Association of Concerned Parents.”  No, what you typically hear is, “This commercial paid for by the X Teacher’s union, Joe Blow, President.”

Who do the unions really represent…really? The students? or the teachers?  They want the funds restored so that their membership is not hurt and their dues are not curtailed.  If their true concern was for the students, why not support school vouchers and charter schools?  They fight the former with a vengeance and the latter, if it is not union organized.

Let’s Not Pick on K-12 Education

Let’s look at other government areas.  Government is the only area where union membership is growing.  How many people relish going to their Department of Motor Vehicles?  How efficient is the Post Office?  Amtrak?  Fannie Mae and Freddie Mac have a bonus compensation plan, which is a step in the right direction unless it leads to cooking the books and making extremely risky loans that lead to the near collapse of our economy.  How can we get this under control?

Controlling the Uncontrollable

Our government is trying to install a massive health care program that will cost a trillion dollars.  At the same time, tens of billions of dollars are stolen from Medicare every year and they can’t stop it.  Early this year, the Obama Administration passed a $787 billion stimulus package, spent $18 million to build a website to track it, and put Joe Biden in the role of watch dog.  How is that working out?  A recent report from ABC News, of all places, found that credit for creating jobs was given on the web site to Congressional Districts that do not exist.  A $1,000 grant was purported to have created 50 jobs.  The New York Times investigated and found that the $1,000 went to purchase a lawn mower.  It took from the time of the founding of the Republic until about the mid 1990s to accumulate $6 trillion in debt.  It has doubled since then, and it is projected to go from $12 trillion to $14 trillion by next year!

It cannot be controlled.  It is impossible to control.  The only solution is to cut the federal government down to size.  Take out the Constitution and read what the true functions of government are supposed to be.  The military, absolutely;  the Post Office, yes it’s in there; coin money; establish patents and copyrights; establish the courts; control the District of Columbia; regulate interstate commerce; make treaties; give the State of the Union address.  That pretty much sums it up and everything else should be left to the states and local government or the people.

We should jettison all the rest and cut this government down to size and get out of debt.  Department of Labor–gone;  Department of Health and Human Services–gone; Department ment of Housing and Urban Development–gone; Department of Transportation–gone; Department of Energy–gone; Depatrment of Education–gone; Department of Veterans Affairs–gone, rolled into the Department of Defense;  Department of Homeland Security–gone, rolled into the Department of Defense; Department of the Interior–gone; Department of Agriculture–gone.

The amount of money saved would be enormous.  Selling all the real estate and buildings would bring in more money.  We could then cut taxes to jump start the economy and run a surplus to cut the debt.  The next step would be to make it illegal for unions to organize government workers without a referendum approved by all the voters.  Side benefits would be less campaign money because there would be less government to influence.  Government would be more accountable to the people because it would be closer to the people, that is, at the state level or local level.  We can do this proactively, or wait until the government is bankrupt and we have to sell off the parts to the Chinese.

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